UAE: Gold prices drop in early trade

Gold prices inched lower in the UAE on Tuesday morning while prices were nearly flat globally as investor attention turned to US inflation data this week that could strengthen the case for aggressive interest rate hikes by the Federal Reserve.

Spot gold was trading at $1,842.45 per ounce at 9.22am local time.

In the UAE, the 24K gold price slipped to Dh223.25 per gram at the opening of the market on Tuesday as compared to Monday’s close of Dh224.0 per gram. Among the other variants of the precious metal, 22K opened at Dh209.75 per gram, 21K at Dh200.0 and 18K at Dh171.50.

Jeffrey Halley, senior market analyst at Oanda, said gold continues to bore traders to death as range trading and reversals by a thousand cuts continue.

“Overnight, a stronger US dollar and firmer US yields pushed gold 0.50 per cent lower to $1,842 an ounce, where it remains in yet another moribund Asian session,” he said.

Halley added that overall, resistance at $1,870 remains intact, followed by the 100-Day moving average (DMA) at $1,889, and then $1,900. Support is at $1,844 and has given way for further falls to $1,830, and then $1,780 an ounce.

“I do not discount a disorderly retreat if the latter fails. Gold remains at the mercy of intraday directional moves by the US dollar and US yields.”

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